Dow Jones futures turned lower Tuesday morning, threatening to extend losses from Monday’s stock market dive. Treasury yields jumped, while U.S. oil prices advanced above $124 a barrel after Bloomberg reported that President Biden is set to ban U.S. imports of Russian energy. Russia’s ongoing Ukraine invasion, along with the West’s response, remains the key focal point in the stock market today.
X
Before Tuesday’s open, Dick’s Sporting Goods (DKS) and Olaplex (OLPX) reported their quarterly results. DKS shares advanced 5%, while OLPX stock jumped about 7% after strong results.
Among the Dow Jones leaders, Apple (AAPL) rose 0.1% and Microsoft (MSFT) inched higher today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Monday within striking distance of a new buy point.
Electric-vehicle leader Tesla (TSLA) rallied almost 1% early Tuesday, looking to rebound from Monday’s skid.
Amid the volatile, headline-driven market, Anthem (ANTM), Costco (COST), CSX (CSX) and Union Pacific (UNP) are among Tuesday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Costco and CSX were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russian Invasion, Oil Prices Surge
Before Tuesday’s market open, Dow Jones futures lost 0.15% vs. fair value and S&P 500 futures were down 00.215%. Nasdaq 100 futures dropped 0.55% vs. fair value. Small caps outperformed in early action, with Russell 2000 futures rising 0.3%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dipped 0.5%, and the SPDR S&P 500 ETF (SPY) moved up 0.1% before Tuesday’s open.
The 10-year Treasury yield jumped to 1.85% Tuesday morning, as bonds sold down following plans announced by the European Union to launch a “potentially massive” joint bond issue in order to finance energy and defense spending in the face of Russia’s assault on Ukraine. The 10-year note closed at 1.75% on Monday.
Meanwhile, U.S. oil prices climbed more than 4% Tuesday, as West Texas Intermediate crude topped $124 a barrel. WTI briefly surged above $130 a barrel on Monday to hit its highest level since Sept. 2008, per Dow Jones Market Data.
Russia continued to bombard Ukrainian cities, after low-level negotiators from both sides met for a third round of talks on Monday. Negotiators agreed on some plans to help people trapped in the fighting, but there was little other progress regarding a cease-fire. Russia’s top diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.
Stock Market Rally Attempt
The stock market posted more disappointing action Monday, as the major stock indexes ended with heavy losses. Despite Monday’s losses, all three major stock indexes remain above their Feb. 24 intraday lows, which means Tuesday will be Day 9 of the ongoing rally attempt.
Monday’s The Big Picture commented, “Once indexes undercut the Feb. 24 lows, the rally attempt is done. To be frank, that technical signal seems to be just a formality. The stock market shows no appetite for risk and the main pain points — Russia, inflation, rate hikes — show no sign of diminishing.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Managed care giant UnitedHealth is just below a 501.03 buy point in a double-bottom base. Shares ended Monday about 3% away from their latest entry. UNH stock traded down more than 2% Monday. UNH shares moved slightly lower early Tuesday.
Bullishly, the stock’s relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Anthem, Costco, CSX, Union Pacific
Anthem is back below a flat base’s 470.12 entry after Monday’s 4.7% decline. Anthem was a recent IBD Stock Of The Day. Shares were flat Tuesday morning.
Retail giant Costco cut gains to 0.6% Monday, but still handily outperformed the major stock indexes. COST shares are tracing the right side of a cup base that has a 571.59 buy point. COST stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics. Costco shares were unchanged early Tuesday.
CSX is trying to break out past a 38.11 buy point in a cup base. The stock broke out past the entry Monday, but reversed 1.1% lower to close below the buy trigger. The 5% buy area goes up to 40.02. CSX shares inched lower early Tuesday.
IBD Leaderboard stock Union Pacific remains in the 5% buy area despite Monday’s 1.2% drop. UNP shares broke out past a 256.21 flat-base entry last week. The 5% buy zone tops out at 269.02. UNP shares were flat early Tuesday.
Per Leaderboard analysis, Friday’s progress justified a boost in the position size by quarter to a half. The RS line had already been making new highs, which is a sign of a market leader.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rallied almost 1% early Tuesday, looking to rebound from Monday’s 4% skid and snap a three-day losing streak. Shares are now squarely below their long-term 200-day moving average. Monday’s decisive break below the 200-day line signals further weakness is likely.
The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 353% off that all-time high.
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
SIGN UP NOW!
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
- Financial Advisor Update
- How To Invest
- Market Prep
- Tech Report
Please enter a valid email address Please select a newsletter GO
Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use
x
Thank You!
You will now receive IBD Newsletters
ALL DONE!
Something Went Wrong!
Please contact customer service
CLOSE
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a 176.75 buy point, according to IBD MarketSmith chart analysis. Shares are about 10% away from the new buy point after Monday’s 2.4% loss. AAPL stock found support at its long-term 200-day line on Feb. 24, but remains below its 50-day moving average. Apple shares rose 0.1% Tuesday.
The stock’s relative strength line remains near recent highs in the face of the stock market weakness, signifying that institutions are hesitant to sell their Apple shares.
Software leader Microsoft fell 3.8% Monday, closing further below the 200-day line. Shares continue to build a new base. MSFT stock inched higher early Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
The post Dow Jones Futures Extend Losses As Biden Set To Ban Imports Of Russian Oil appeared first on Investor’s Business Daily.
